Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
On Wednesday, Piper Sandler reiterated its Overweight rating on Legend Biotech Corp (NASDAQ:LEGN) shares, maintaining a $78.00 price target. According to InvestingPro data, the stock currently trades at $37.63, with analysts’ targets ranging from $53.12 to $95.00, suggesting significant potential upside. The company’s market capitalization stands at $6.89 billion. The firm’s analysts project a significant increase in global net sales for CARVYKTI, anticipating growth from $963 million in 2024 to $1.75 billion in 2025, a surge of 82%, and further to $2.9 billion in 2026, marking a 66% increase. This optimistic outlook is based on the expansion of manufacturing supply, with the goal set by Legend and its partner Johnson & Johnson to produce 10,000 autologous doses by the end of 2025, potentially reaching a value of approximately $5 billion, and more than 20,000 doses by the end of 2027, valued at over $10 billion.
The majority of CARVYKTI’s revenues, which are increasing and currently constitute 60%, come from its use in the 2nd to 4th line multiple myeloma (MM) treatments, a market segment where Legend is expected to enjoy several years without direct competition. Additionally, Legend Biotech is actively pursuing new developments, with ongoing Phase I studies for LB1908 targeting gastric, esophageal, and pancreatic cancers, with safety and efficacy data expected to be reported in the second half of 2025.
The collaboration with Novartis (SIX:NOVN) is also yielding research advancements, as they conduct a Phase I study of LB2102, which is focused on small cell lung (SCLC) and large cell neuroendocrine (LNEC) cancers. The financial position of Legend Biotech appears robust, with the company having ended 2024 with approximately $1.1 billion in cash, which is anticipated to fund operations until the company reaches operating profit in the second quarter of 2026. InvestingPro analysis confirms this strength, showing a healthy current ratio of 4.98 and more cash than debt on its balance sheet. The company has demonstrated impressive revenue growth of 123% over the last twelve months, though it remains pre-profitable with negative EBITDA of $340.56 million.
The positive forecast and strategic developments underscore Piper Sandler’s confidence in Legend Biotech, as reflected in their reiterated Overweight rating and $78 price target for the company’s stock. For deeper insights into Legend Biotech’s valuation and growth prospects, InvestingPro subscribers can access comprehensive research reports, including detailed financial health scores and additional ProTips that could inform investment decisions in this rapidly growing biotech company.
In other recent news, Legend Biotech Corporation reported fourth-quarter 2024 financial results that exceeded analyst expectations. The company posted adjusted earnings per share of -$0.16, surpassing the consensus estimate of -$0.25. Revenue for the quarter reached $186.52 million, beating analyst projections of $173.99 million. CARVYKTI, the company’s multiple myeloma treatment, contributed significantly to these results, with net trade sales of approximately $334 million in the fourth quarter and $963 million for the full year. Legend Biotech has treated over 5,000 patients with CARVYKTI to date. Additionally, the company initiated commercial production at a Novartis facility and received reimbursement approval in Spain for earlier treatment lines of CARVYKTI. In analyst developments, H.C. Wainwright raised its price target for Legend Biotech to $75, maintaining a Buy rating, as the company aligns with the 2025 sales consensus for CARVYKTI. The firm expressed confidence in Legend Biotech’s growth trajectory and operational goals. Legend Biotech also reiterated its production capacity guidance, aiming to produce 10,000 doses by the end of 2025.
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